French President François Hollande paid an official State visit to Vietnam from September 5 to 7, 2016 to work out orientations of cooperation in the coming time. This is the first visit to Vietnam by a French president for 12 years, since President Jacques Chirac’s visit in 2004.
The visit is to concretise the strategic partnership that Vietnam and France signed in 2013 and to clarify directions of cooperation in politics - diplomacy, security - defence, trade - investment, science - technology, and education - training.
As many as 20 documents were signed during the visit. Among remarkable agreements, the Hanoi People’s Committee signed a service contract with Airparif, an organisation responsible for monitoring air quality in the Ile de France. The purpose of the contract is to help improve air quality in Hanoi by setting up a monitoring system. After setting up demo stations, France will help Hanoi study the cause of air pollution and advise on solutions. Another highlight in the framework of President Hollande’s visit was a US$6.5 billion deal signed by Vietnamese carriers Jetstar Pacific, Vietnam Airlines and Vietjet Air with French aviation giant Airbus.
France is one of the largest European trade partners of Vietnam. The two-way trade turnover has increased dramatically in the past years. Customs data from France and Vietnam showed that French exports to Vietnam climbed 72.5 per cent year on year in 2015. If export value related to aerospace sector was excluded, the growth was 19.8 per cent. Meanwhile, Vietnam's exports to France valued EUR3.7 billion in 2015, up 34.2 per cent over 2014. The two-way trade turnover reached US$4.3 billion in 2015.
Vietnam’s major exports to France include telephones and accessories, footwear, apparels, computers, electronic products and components, and seafood.
Meanwhile, Vietnam imports vehicles, computers, electronic products and components, and chemical products from France.
On investment, France started investing in Vietnam in 1988. As of March 31, 2015, it ranked third among European countries (after British Virgin Islands and the Netherlands) and ranked 15th among 101 countries and territories in the world with registered investment in Vietnam. The country invested over US$3.383 billion in 429 investment projects. Some 300 French companies are investing in Vietnam.
French direct investment has primarily focused on such fields as information and communication services; production and distribution of electricity, water and air-conditioning; industry; agriculture; distribution of goods; entertainment; construction; and finance and banking. French investment is present in 32 provinces and cities, led by Ba Ria - Vung Tau, Ho Chi Minh City and Hanoi. Particularly, French companies are very interested in the energy sector, an area where French companies have strong capacity and want to transfer technologies to Vietnam. A lot of big French corporations such as Véolia, Vinci, Alstom, Buoygue, EDF, GDF and Schneider Electrics have opened representative offices or branches and established companies in Vietnam.
French companies are keen on various investment forms in Vietnam, including joint venture, business cooperation contact, wholly foreign investment, BTO (build - transfer - operate), BT (build - transfer) and BOT (build - operate - transfer). The average size of a project is US$11.59 million (much lower than the general investment scale of a foreign project of US$15 million).
Some big business cooperation projects led by France in Vietnam include a business cooperation contract between Vietnam Posts and Telecommunications Corporation (VNPT) and FCR Vietnam (a subsidiary of France Telecom in Vietnam) signed in 1997 with a registered investment capital of US$615 million in telecommunications services; the US$520 million Cai Mep Port Joint Stock Company project licensed in 2008 to Terminal Link of France to provide port operation services; the US$480-million Phu My 2 thermal power plant project licensed in 2001 to the Electricity of France (EDF) in cooperation with Japan. Especially, the European Aeronautic Defence and Space Company (EADS) is conducting a study on construction investment of an aviation industrial production base (assembling aircraft components) in Danang City.
At present, three Vietnamese companies are investing in France. Vietnam Airlines invested EUR20 million to sell air tickets and marketing. FPT Corporation injected EUR11 million in software business and information technology services. CMC Software Solutions poured EUR100,000 in software and IT services.
Regarding official development assistance (ODA), France is a leading European donor for Vietnam. France gave US$110 million to Vietnam last year. Vietnam was the second largest recipient of French ODA in Asia, with total pledge value amounting US$18.4 billion since 1993.
Currently, the Vietnamese community in France has 300,000 people, mostly holding French nationality.
In order to create a legal basis for business cooperation, the Vietnam Chamber of Commerce and Industry (VCCI) signed several cooperation agreements with French promotion agencies, including a cooperation deal with the Versailles Chamber of Commerce, a cooperation agreement with the Paris Chamber of Commerce and Industry, a cooperation pact with the Chamber of Commerce and Industry of Marseilles, a cooperation agreement with the Vietnam Chamber of Commerce and Industry of Meurth et Moselle, and a cooperation agreement with Conseil National du Patronat Francais (CNPF).
Anh Mai
Vietnamese
